Mannheim, Germany-based FUCHS PETROLUB announced last Tuesday it is expanding by taking over the worldwide white oils and food machinery specialty lubricants business of Chevron. The business will be integrated into FUCHS LUBRICANTS CO. (USA). The Chevron business had sales of EUR 11 (US$12.6) million in 2015, approximately 85% of which are in North America.
"Food Grade customers require support in the areas of Food Safety, Preventative Maintenance and Lubricant Technology. FUCHS has developed a successful program around the CASSIDA brand and complementary services," said Steve Puffpaff, CEO of FUCHS LUBRICANTS COMPANY. "The acquisition and new marketer partnerships will significantly improve the scale for support for Food Grade Lubricant customers."
"We believe this change will benefit our customers and marketers as FUCHS is a leader in these specialty segments and can meet their needs with an expanded food machinery product line," said Brian Stripling, General Manager Brand, Technology & Original Equipment Manufacturer (OEM), Chevron Products Company, a division of Chevron U.S.A. Inc. "Chevron values our customer relationships and we are committed to a smooth and seamless transition to FUCHS."
The parties expect the transaction will be effective June 1, 2016.
FUCHS is known in the industry for growth increases through acquisitions more so than organically. In its latest quarterly report, FUCHS PETROLUB said it increased its sales revenues by 12% to EUR 550 million. Sales revenues increased organically by 2% and externally by 13% as a result of the acquisitions made in 2015.
In October 2010, FUCHS acquired the food grade lubricants business from Shell, which included product technology, the customer base, the global CASSIDA brand, as well as those employees working in sales and research and development.
In May 2014, FUCHS acquired South Africa-based LUBRASA's food grade line of products in Southern Africa.
FUCHS acquired Deutsche Pentosin-Werke GmbH in May 2015 for a purchase price of EUR 112 million, as well as acquiring in August 2015 Statoil Fuel & Retail Lubricants AB (SFR Lubricants), based in Stockholm, Sweden from Couche-Tard Luxembourg S.A.R.L.
In 2015, the FUCHS Group accounted for EUR 2.1 (US$2.4) billion sales with staff of 4,823. FUCHS LUBRICANTS CO. (USA) made EUR 263 million sales with 349 employees.
